US c-store retailer The Pantry today (8 February) admitted that its first-quarter EBITDA missed the company’s expectations on the back of “soft” sales.
The group posted adjusted EBITDA of US$31.3m for the three months to 30 December, down from $40.3m a year ago.
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The Pantry’s revenues were up – increasing from $1.74bn in the first quarter of its last fiscal year to $1.8bn – but president and CEO Terry Marks said the winter weather had hit sales in December.
“Adjusted EBITDA was below our expectations for the quarter, driven by soft merchandise comparable store sales growth and low fuel margins. Merchandise sales performance was particularly weak in the latter half of December, which we believe was primarily driven by the severe winter weather that affected the south-east,” Marks said.
The Pantry’s comparable-store merchandise sales rose 1.3% during the quarter – or by 1.7% excluding cigarettes.
The retailer posted a net loss of $12.2m for the quarter, compared to a net loss of $26.1m a year earlier. However, The Pantry’s bottom line in the first quarter of the previous fiscal year was hit by one-off charges. Excluding those costs, The Pantry’s net loss in the first quarter of 2009/10 was $5.2m, meaning its net loss more than doubled in the present fiscal year.
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By GlobalDataClick here for the full statement from The Pantry.
